We tell you why Bitcoin fell and what forecast BTC is given by members of the crypto community against the backdrop of a decline in the cryptocurrency rate.
What’s happened
On November 14, 2023, Bitcoin went into decline. By evening, the cryptocurrency fell by more than 5%. The minimum BTC for 24 hours, according to CoinMarketCap, is $34,948, the maximum is $36,753. As of the time of writing the review, the coin is trading at $35,578.
Most coins from the top 10 capitalization showed negative dynamics amid the fall of Bitcoin.
Why did Bitcoin fall?
Bitcoin fell on news of inflation in the United States. On November 14, the US Federal Labor Bureau published new data. According to the department, the US consumer price index (CPI) slowed to 3.2% in October. In September the figure was at 3.7%.
The CPI result turned out to be better than expected. Positive dynamics allow analysts to hope that the American Federal Reserve will not return to increasing the key interest rate.
Declining inflation is a positive signal for the crypto market. The changes bring the Fed’s key interest rate rate cut closer. The step increases the investment attractiveness of high-risk assets such as cryptocurrency.
Despite the positive news, Bitcoin fell. There could be several reasons for the negative dynamics of BTC. One of them is sudden movements in the futures market. Against the backdrop of the release of CPI statistics, the volume of liquidations on long BTC positions increased to $97.9 million. They were preceded by liquidations of $126.3 million per day. Such volumes of liquidations could put pressure on the cryptocurrency rate.
BTC derivatives market statistics. Source: Coinglass
Will BTC be able to resume growth?
As of the time of writing, the majority of market participants are betting on long positions in Bitcoin, which indicates their belief in the prospects for further growth of the cryptocurrency.
Ratio of long Bitcoin positions to short ones. Source: Coinglass
One of the reasons for the positive forecasts is the likelihood that the first spot Bitcoin ETF in US history will soon be approved.
Doctor Profit, a popular trader in the crypto community believesthat the BTC correction is not yet complete. In his opinion, the cryptocurrency risks going down to $34 thousand. In the chart below, he presented the possible trajectories of Bitcoin’s movement.
Some members of the crypto community suggest that BTC has already undergone a correction and is heading towards updating local highs. For example, popular analyst in the crypto community CrediBULL Crypto believesthat the coin is on the verge of another wave of growth. He presented the expected trajectory of BTC on the chart.
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
